Meta’s Profit Rises 35 Percent, Even as Spending Spree Continues

Revenue and Earnings

Meta Platforms Inc. reported on Wednesday that its profit jumped by 35% in the fourth quarter of fiscal 2022, even as the company continued to invest heavily in its metaverse ambitions.

The social media giant said that its net income rose to $10.3 billion, or $1.86 per share, in the three months ended December 31, compared to $7.7 billion, or $1.38 per share, in the same period a year earlier.

Revenue for the quarter increased by 24% to $33.7 billion, driven by growth in advertising revenue.

Metaverse Investments

Meta has been investing heavily in its metaverse ambitions, which include building virtual reality headsets and developing software for virtual worlds.

The company said that it spent $10.2 billion on its metaverse projects in 2022, and it plans to continue investing heavily in this area in the coming years.

Despite the heavy spending, Meta's profit margins have remained relatively stable. The company's net income margin was 30% in the fourth quarter of 2022, compared to 29% in the same period a year earlier.

Outlook

Meta said that it expects its revenue to continue to grow in 2023, but at a slower pace than in 2022.

The company said that it is facing a number of challenges, including the macroeconomic downturn, competition from other social media platforms, and regulatory scrutiny.

However, Meta said that it is confident in its long-term prospects and that it is committed to investing in its metaverse ambitions.